The most forgotten in the world of Party Data. Second-Party Data.
Everyone knows the Third-Party Data, since it’s used in practically all eCommerce in the world, and the First-Party Data, which is used to a lesser extent, but is still used.
So, what is Second-Party Data? Why does this type of information go so unnoticed or have very few uses? Who usually uses it? How does it differ from the other ways of capturing information?
In today’s article we will see all this and much more.
Let’s get to it!
What is Second-Party data?
Second-Party Data is similar to First-Party Data, but the difference is that Second-Party Data is produced on another web page or in another application than ours.
In other words, it is a direct access to the First-Party Data from another company, brand, etc. Normally, the information is sought from specialized sites in your niche market or sector.
The objective of Second-Party is to ensure a relationship of trust and cooperation between the two brands. These brands can have an existing relationship, or create a completely new relationship.
This strategy offers us two ways: the first would be to get the information from that website or platform to use it to our benefit; and the second would be to advertise on the platform of the brand we are collaborating with.
In this way, we can create a new way of advertising.
Example of Second-Party
But, let’s go with an example for you to understand it better:
Imagine you are a wedding photographer and the target customer are those who are about to get married. You have a website, but unfortunately it has very little traffic for X reasons.
Therefore, the First-Party information you can get from your website is of little use to you for advertising campaigns.
So, what can you do?
Well, you can do a study on a company or brand that has the same target audience as you, such as a blog, a magazine, a website that talks about weddings, or any platform specialized in weddings.
Then, you would contact that website to see what kind of collaboration you could do. Obviously, that brand will charge you for every X users that you get, although that will depend on your negotiation skills.
Also, you can ask them to put a tracking code or a pixel of yours on the users, so you can launch your own advertising campaigns.
Why is it so little used?
Several reasons should be taken into account when analyzing why Second-Party Data is not used as much as the other alternatives.
First of all, you rely heavily on your negotiating skills and the relationships you are able to build with other brands or companies.
Secondly, you must conduct a thorough study and research to ensure that your target audience is the same as that of the company you want to contact. Otherwise, you could lose a lot of money by not conveying the right message.
Also, you have to analyze the situation well to make the right decision. Any mistakes in research or negotiation can be detrimental to your company.
Even so, when you do all the above steps correctly, Second-Party Data offers great advantages. Not only getting more customers by addressing your target audience, but also creating trusting and cooperative relationships with other companies with whom you have similar interests.
That’s all for today!
Thank you very much for reading us as always.
See you in the next post 🙂
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